They all have politicians on both sides of the aisle either up in arms or proclaiming victory all the time.

I recounted what our very own Weiss Ratings research showed is happening to health-care insurance premiums, in part because of Obamacare. And I’ve talked about how health-care inflation is contributing to a broader rise in prices across the economy.

But regardless of whether you love or hate Obamacare as individuals, one trend is abundantly clear for investors: The hospital sector is making bank from it!

Why? First, because it’s dramatically boosting patient traffic. Second, because Uncle Sam is footing the bill for millions more Americans. That means hospitals are seeing more customers, and fewer of those customers are reneging on the bills they rack up.

“It’s dramatically boosting patient traffic, and Uncle Sam is footing the bill for millions more Americans.”

Take a look at today’s online Wall Street Journal, and it’s right there in black and white. The paper notes that:

“A rush of newly insured patients using health services has boosted hospital operators’ fortunes but has racked up costs that insurers didn’t anticipate, corporate filings and interviews with executives show.

“People are getting more back surgeries, seeking maternity care and showing up at emergency rooms more frequently, executives say, boosting income for hospital operators.”

The story goes on to say that hospital operator Tenet Healthcare (THC) saw a 4 percent year-over-year rise in admissions with a 22 percent plunge in those without insurance. Competitor HCA Holdings (HCA)‘s comparable figures were 3.6 percent and -6.6 percent. No wonder EBITDA surged 37 percent at THC, while revenue rose more than 9 percent at HCA.

People are showing up at emergency rooms more frequently, executives say, boosting income for hospital operators.

None of this comes as a surprise to my Safe Money Report subscribers. I identified this trend and recommended a separate hospital firm as a potential winner last fall — and they had the chance to bank up to 16.9 percent on a round of their shares. Now, I’ve just recommended a fresh pick in the sector — and my indicators suggest it could be a major, major winner over time.

To get my precise “Buy” and “Sell” signals, and the name of this latest pick, feel free to give Safe Money a try by clicking here. Or just call my customer service staff at 800-291-8545.

Meanwhile, I’m curious if you’ve profited from the rollout of Obamacare — by owning hospital stocks or other health-care firms. Any that you’d like to share with your fellow investors?

What about the ongoing rise in premiums that the program appears to be driving? How are they impacting you? My sense is that we’re stuck with them as Americans, so we might as well try to profit from them as investors! Do you agree? Let me know at the Money and Markets comments section here.

OUR READERS SPEAK

Yesterday’s piece on “Uncle Warren” Buffett and what he’s doing with his cash sparked a great discussion at the website. Topics included what it does (or doesn’t!) mean, and about how much cash you and your fellow individual investors are holding.

Reader H.C.B. said: “Investors would be better served by investing in Berkshire Hathaway rather than trying to second guess Warren Buffett. He is not going to go public until he has made his trade, so you are not likely to profit on short term trends. Just do like he does and buy quality for the long haul.

“The fact a wide range of investors hold lots of cash today is a reflection of a lack of confidence in the market, the economy, The Fed, and the federal government. Market confidence still has not returned to the levels it was previously at in 2007 and it may not for some time to come. Historically low daily volumes on the NYSE attest to this fact.”

Reader Rob U. was also skeptical of how much value the broad market offers here, saying: “By all measures the stock market is overvalued. Shiller CAPE, market cap to GDP. Corporate profits are at record highs, margin debt is again at record highs, and it’s been five years and we’ve had neither a bear market nor a recession. I would hold no less than 20 percent cash.”

On the other hand, Reader John said Buffett’s high cash level doesn’t signal anything concerning. His take: “It’s no surprise that Warren Buffett is holding cash. He ALWAYS holds cash — money that comes in as profits from the various companies he owns entirely is where it comes from.

“So it’s not at all unusual for Buffett to have a huge pile of cash on hand, and it’s nothing to worry about per se. He does it all the time while looking around for the next good buy. And you probably should too until you’re ready to make a wise investment selection. Why would you do otherwise?

“When Buffett buys a company ‘lock stock and barrel’ he does so specifically to get the cash flow the company generates. In effect he takes a 100 percent dividend from them rather than whatever small percent of profits the CEO decides to share with stockholders.”

Meanwhile, Reader Kathryn H. had an interesting tip for determining the REAL state of the job market. Her view: “One sure way to estimate the real unemployment rate, especially among those with graduate degrees, is just to look at how high LinkedIn is. The more it goes up, the higher the unemployment is among this group of people, regardless of the discipline.”

We got more powerful data suggesting my long-standing story of an economic recovery is dead on target! Factory orders rose 1.1 percent in June, more than double the 0.5 percent estimate. Plus, the ISM Services index rose to 58.7 in July from 56 in June. Not only did that beat forecasts, but it was also the highest reading going all the way back to 2005!

I have a bunch of trips coming up, for both business and pleasure. And boy, do I know how this story on higher ticket prices is true! It notes the average domestic, roundtrip ticket price just hit a record $509.15, including taxes.

That’s up $14 from a year earlier. Hotel costs once you get to your destination are up 4 percent from a year earlier, too. Of course, these increases must all be imaginary because the Fed says there’s no inflation. Haha!

Interesting move in the media space by Gannett Co. (GCI, Weiss Ratings: A-). The company publishes USA Today and several other newspapers, and owns TV stations around the country. It’s going to split up its online and offline businesses to try to unlock value for shareholders, following similar moves from the likes of Time Warner (TWX, Weiss Ratings: A).

What is Russian President Vladimir Putin planning? No one knows for sure. But according to the New York Times, he’s building up one hell of a war-making arsenal close to the Ukrainian border. Specifically, the Times notes …

“Over the past several weeks, Russia has built up 17 battalions — totaling 19,000 to 21,000 troops, according to one Western estimate — into a battle-ready force of infantry, armor, artillery and air defense within a few miles of the border. In addition, it has vastly expanded its firepower, increasing the number of advanced surface-to-air missile units to 14 from eight, and deploying more than 30 artillery batteries, according to the officials.”

A midday stock market swoon, related to rumors of a Putin invasion of Ukraine, showed that investors are still focused closely on potential chaos in eastern Europe.

The second Ebola patient has arrived in the U.S. from Africa. She will be treated at the same specially equipped Atlanta hospital as the previous patient. Both were medical missionaries overseas.

Any thoughts on treating Ebola patients in America, by the way? Share them.

Reminder: You can let me know what you think by putting your comments here.

Until next time,

Mike Larson

Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.

{19 comments }

PeterTuesday, August 5, 2014 at 5:58 pm

It is a good thing to bring the two missionaries back to the U. S. for treatment for several reasons. First, we have the capability to isolate them and the disease. Second, we can better study the disease here with the equipment and ability we have to take biological samples with out contamination from the patients for study. That will help us find either a cure or a better ability to manage an outbreak. Third, since they are American missionaries we have an obligation to help them out.

TEDTuesday, August 5, 2014 at 6:08 pm

I have VANGUARD HEALTHCARE FUND and it has been going very good for the last two years and surged this year. I anticipated increased business for the entire health care industry. Ted

ianTuesday, August 5, 2014 at 6:40 pm

I just love NHS,sorry boys,thats the the British hospitals here in the UK and guess what its all free and if your in a bad way they will pick you by ambulance.Now that’s service!Now don’t think of coming over cos you will be hit with a bill.

B NewtonTuesday, August 5, 2014 at 6:55 pm

I agree with Peter that it’s to our advantage to treat the two medical missionaries in the US under controlled conditions so that US medical personnel will be able to learn more about how to treat and cure Ebola. Eventually somebody with Ebola will slip into the country under non-controlled conditions and the lessons learned by treating the missionaries here will help US hospitals deal with other Ebola cases. In addition, it sends a positive message to health professionals that even if they contract infectious diseases when treating patients, we will not abandon them and let them die if they catch an infectious disease from their patients.

Now I know what Biotech sector has been on a tear the past year or so. Gilead for example, has marketed the brand name drug Slaventi to treat Hepatitis C. The cost of a course of treatment for 12 months is a staggering $84,000. Its clear few individuals could afford it on their own. Its safe to say Obama Care insurance policies or Medicare/Medicaid are the ones who pay for expensive treatments like this. So, Gilead has a money machine and the Federal Government is ultimately the primary payer.

There are a consistent number of patients out there ( about 20 million) with liver disease treatable with this patented drug. There is no competition. So, Medical insiders would have been on the know way before the general investing public. Institutional investors simply go for momentum in whatever sector happens to have it. They are more traders than buy and hold Warren Buffet types. ( Does Warren Buffet own any drug companies?)

They don’t really care much as to why. Many investors are agnostic as to the particular sector or industry that demonstrates the high growth momentum they are always looking for and a quick buck.

Shirley WilkieTuesday, August 5, 2014 at 9:23 pm

I feel bringing Ebola patients here is a way to experiment and see if this new treatment
works. Better to be here where we have state of the art medical care and more doctors
working on cures. Also, if they went there, they would all be hounding them to use the
stuff on them and then suing the USA if it didn’t work, even if it wasn’t the doctors fault.
Everyone thinks Americans are rich. We are pretty sophisticated in prevention methods, sure hope it results in a breakthrough cure.

EricTuesday, August 5, 2014 at 9:44 pm

I will keep this short.. as a result of Obo care.. my monthly premiums have more the DOUBLED…. so I can pay for lazy dead beats. Now greedy doctors will be able to file even
more fraudulent claims. Sorry I do not support Obo care.

LennyWednesday, August 6, 2014 at 12:01 am

I agree

DorothyTuesday, August 5, 2014 at 10:27 pm

Has the US population fallen off the turnip truck & landed on their heads when it comes to intelligently evaluating the ramifications of bringing the Ebola virus to the United States???? This virus has no cure, is highly contagious, has a high death rate of 60-90% if you believe the popular press figures & is believed to be transmitted by close contact. However, in at least one 2012 research study by a Canadian researcher, the transmission of the Ebola virus was believed to be via airborne water droplets as from a sneeze/cough as the animals were not in close physical contact & the virus showed up in the lung tissue of the treatment animals.

The missionaries chose to take a calculated risk with their own health & lost. Do I believe we should treat them? Yes. Do I believe we risk the health & well being of millions of Americans to bring them back on our own soil to do so? ABSOLUTELY NOT! America is not the only industrialized society, we do not corner the market in having all the answers, all the best hospitals, all the high functioning laboratory facilities, or intellectual properties. It is all about risk management. Personally, I am enraged that our government & the CDC was this stupid or evil to put us all at such a high risk. All the treatment & research should be completed in Africa where the virus is prevalent. To have a talking head with numerous letters behind his name state on national television all the precautions were taken & he is confident the patients can be treated without infecting anyone else when they don’t even know, they just have some strong suspicions as to how the virus is transmitted, is to serve as solace to the public so there wouldn’t be mass hysteria. Well, I am no lemming.

Totally agree with Peter above. Just as our military does not leave one of their own wounded on the battlefield, we can not leave our missionaries in foreign country where there is not the proper sanitation or medical care. Here at home (in isolation to protect all the other health care workers) they will have much better care and with that care and the prayers of much of the nation they will get well – and no further outbreaks will ocurr..

BeverlyWednesday, August 6, 2014 at 2:01 am

My thoughts on the ebola patients: It is official ………..we have lost our minds.

J.R.Wednesday, August 6, 2014 at 5:09 am

This is the most outrageous violation of our immigration and health laws that I have ever heard of. To bring a highly lethal disease with no known cure into the USA is a danger to the entire population. Outrageous at the least. Scandelous at the best.

RoyhowardWednesday, August 6, 2014 at 6:18 am

Year 2018, society has collapsed. Dogs roaming
Empty streets feasting on Ebola infected
bodies. We brought disease here and almost
wiped out the Native American, now we
Fail to learn from our mistakes and do it again!
It wii take the Ebola less than a year to become
antibiotic resistant. Say your prayers!

JamesWednesday, August 6, 2014 at 8:54 am

The only reason these patients are here is to allow the CDC to harvest viruses different from the virus they received a patent in 2007. The scenario will be to fund (already done) pharmaceutical research for a vaccine, then there will be a lab accident and a virus will escape to the wild and instigate a panic. The government will then attempt to force vaccination of all the population making billions for the lab with the vaccine.

Re: Putin. Shades of 1938 and Barack, er, Neville and the French , as usual.

g.P.edlinWednesday, August 6, 2014 at 12:40 pm

Treating ebola cases in the most advanced facilities of their kind in the world has allowed a new treatment to be used .It seems at first sight to be startlingly effective .If so we have a weapon to stop it and a way to treat it thanks to the experts at cdc and I,m from the other side of the pond

colleen gregorySaturday, August 9, 2014 at 4:35 pm

Uncle Sam is footing the bill. In other words the American people that pay taxes are footing the bill.